Free Casualty Insurance Basics Practice Questions
Tennessee Casualty exam — 146 practice questions.
Subtopics: Commercial risk exclusions, Commercial cancellation grounds, Commercial cancellation notice, Cancellation reasons, Commercial nonrenewal, Late nonrenewal notice, Reduced coverage at renewal, Nonrenewal notice exceptions, Commercial premium increase, Commercial nonpayment, Commercial rate filing, Loss run requests, Loss run period, Loss run fees, Loss run violations, Classification changes, Residual market information, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Negligence elements, Proximate cause, Comparative negligence, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Duty to defend, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Statute of limitations, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application, Intentional torts, Slander, Conversion, Invasion of privacy, Modified comparative negligence, Pure comparative negligence, Comparative negligence calculation, Legal liability sources, Criminal vs civil, Duty of care to entrants, Dram shop laws, Products liability, Occurrence vs claims-made, Claims-made tail, Common policy conditions, Legal action against insurer, Bankruptcy condition, Supplementary payments limits, Cancellation calculation, Limits calculation, Deductible types, Primary and excess, Contribution by equal shares, Contribution by limits, Duty to defend scope, Reservation of rights, Medical payments vs liability, Personal injury vs bodily injury, Claim vs suit, Negligence defenses, Extended reporting period, Retroactive date
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Sample questions & answers
1. Tennessee's Cancellation of Commercial Risk Insurance Act does NOT apply to:
Policies written by surplus lines insurers
For this act, commercial risk insurance excludes fidelity and surety bonds and insurance written by a surplus lines insurer.
2. A Tennessee commercial policy has been in force for six months. Which is a permitted reason to cancel it midterm?
Failure to follow written loss control recommendations
After 60 days, commercial risk cancellation is limited to listed grounds, including nonpayment, conviction, fraud or misrepresentation, failure to comply with written loss control recommendations, material change in risk, and policy violations.
3. Which of the following is NOT one of the listed grounds for canceling a Tennessee commercial risk policy after it has been in effect for 60 days?
The insured's business revenues fell
Listed grounds include nonpayment, conviction for a crime increasing a hazard, fraud or material misrepresentation, failure to follow loss control recommendations, material change in risk, solvency findings, and policy violations; lower revenue is not a ground.
4. A permitted cancellation of a Tennessee commercial risk policy takes effect no sooner than:
10 days after the notice is mailed
Cancellation for a listed ground, or of a non-renewal policy in effect fewer than 60 days, is effective not less than ten days after the date of mailing.
Practice: Casualty Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
